Klarna launches AI shopping lens and price comparison tool in UK

11 October 2023 , 10:49

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The new rewards scheme is initially launching in the UK. (Image: (PA))

The 'buy now, pay later' firm Klarna is set to challenge the dominance of Google with the introduction of new artificial intelligence (AI) powered tools. These tools will enable shoppers to take a picture or scan a barcode to shop and compare prices across millions of items.

The Swedish payments group is introducing a shopping lens within its app that will allow users to take a picture of a product or style and search among 3.4 million UK specific items to compare prices, retailers and read reviews.

Additionally, Klarna is launching a new search tool for in-store shoppers, enabling them to scan the barcodes of millions UK products for instant price comparisons, product information and reviews. The tool will also provide information on whether there are other styles or colours available online.

The app's built-in camera scanning feature is being launched across the UK, US, Sweden, Germany, Denmark and Norway. It will also display similar items to match the style of the pictured product and offer inspiration.

This development sees Klarna further utilise AI to enhance its search and compare tools, adding to its core 'buy now, pay later' service.

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With this move, Klarna is positioning itself as a competitor to Google Lens in the shopping space. The payment group's boss expressed his hope to "lead a revolution in retail".

Sebastian Siemiatkowski, the Chief Executive and Co-founder of Klarna, stated: "Just like the internet gave everyone access to information, AI gives everyone access to intelligence, context and personalisation. At Klarna we're using this to bridge the gap between the physical and digital world, connecting how humans get inspired with how computers search."

Klarna is set to introduce a series of new services, including the expansion of its shoppable videos service previously available in the US since last October across the UK, Germany and Sweden. This will enable Klarna's app users to shop directly from videos from brands and its global creators.

Moreover, the group is initiating a new in-app cashback programme in the UK, providing 'buy now, pay later' shoppers the opportunity to earn back up to 10% of their purchase amount, which can be used as a discount on their subsequent purchase via Klarna across various brands.

The rewards scheme is initially launching in the UK, with plans for further market expansions in the pipeline, according to the group.

* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]

Steve Charnock